The General Standards for the Professional Practice of Internal Auditing

question 10

Multiple Choice

The general standards for the professional practice of internal auditing include the following:
-The director of internal auditing should coordinate internal and external audit efforts.
_____

• A)Independence,
• B)Professional Proficiency,
• C)Scope of Work,
• D)Performance of Audit Work, and
• E)Management of the Internal Auditing Department.

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Definitions:

Marginal Cost

The financial outlay required to produce a further unit of a product or service.

Demand

Demand refers to the quantity of a product or service that consumers are willing and able to purchase at various prices during a given time period.

Inverse Demand Curve

A representation of the demand for a good showing the maximum price consumers are willing to pay for a given quantity.

Perfect Price Discrimination

Perfect price discrimination occurs when a seller charges each buyer their maximum willingness to pay, extracting all consumer surplus.